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A Project Report ON / IN

Consumer Behaviour in Online Shopping

AS PARTIAL FULFILLMENT OF PGDM PROGRAM, II nd year

SUBMITTED BY (Vivek Singh)

IAEERS PUNE INSTITUTE OF BUSINESS MANAGEMENT (APPROVED


BY AICTE, MINISTRY OF HRD, GOVT. OF INDIA)

PUNE 2010 -2012

DECLARATION
I, Vivek Singh hereby declare that this project report is the record of authentic work carried out by me during the period from 11th May 2011 TO 11th July 2011 and has not been submitted earlier to any university or institute for the award of any degree/diploma etc.

Name of the Student: Vivek Singh Date:

ACKNOWLEDGEMENT
This project has been an honest and dedicated attempt to make the analysis on marketing material as authentic as it could. And I earnestly hope that it provides useful and workable information and knowledge to any person reading it. During this period, I had the pleasure of working closely with accomplished organization people who shared with me their experience and helped me in completion of my research. I express my sincere thanks to my project guides and my institute faculty for guiding me. Lastly I am grateful to my parents who been my mentors and motivators. I am also thankful to all my batch mates who have been directly or indirectly involved in successful completion of this project.

TABLE OF CONTENTS:
Sr.No. 1.

Topics
Objectives And Scope Of The Project.

Page no.s

2.

Background Introduction / Synopsis Of The Project. a) Company profile, b) Basic introduction of the project, c) Organizational hierarchy, d) Department.
3.

Research Methodology. a) Methods & Tools adopted for analysis, b) Data collection, c) Techniques for analysis, d) Pictorial / Graphic / pie charts, presentation of data.
4.

Observations / Findings.
5.

Limitations.
6.

Suggestions / Recommendations.
7.

Conclusion.
8.

Bibliography.
4

Objectives And Scope Of The Project


Objectives:1) To shop wile in the comfort of your own home, without having to step out of the door. 2) To be able to easily save money and compare prices from website to website .

3) Online resellers tent to sell at a lower price due to less overhead expenses. 4) It is very comfortable and stylish, the most important is that its price is very attractive. To stud the online shopping behavior of customers. To study the factors influencing online shoppers and consumers. To study the customers level of satisfaction with regard to online shopping. To examine whether customers prefer online shopping to physical stores. Need:The need of this research is to identify and get insight into what main factors the onlineconsumer takes into consideration when most he buy products on internet what affectstheir shopping behaviour, basic need of this research is to find out what are the mainfactors affect the online consumer when considering and making a purchase over Internet.

Goal Statement:The goal of this project is to develop and apply a model to explain and predict adoption of online consumer search and purchase behaviors based on a synthesis of utility maximization theory and consumer adoption theory that considers motivations (perceived advantage or benefits) derived from online search/purchase and costs (in terms of physical and/or psychological effort input) associated with online search/purchase. Specific Objectives of research project are:1. To develop a valid and reliable measure of motivations and costs associated with online information search and purchase behavior. To test the ability of the measure to identify the impact that specific motivations and costs have on apparel search and purchase decisions among Internet shoppers worldwide. To evaluate the potential of the Internet as an efficient and effective medium to disseminate information to enhance brand/product awareness, evaluations, and purchase intentions in the global marketplace.

2.

3.

4. Most of the customers wants to save their time and money while they shop. so they choose online shopping, instead of going to shopping malls and centers.

Abstract:
This years goal was to develop valid and reliable scales that can be used to identify and measure motivations associated with purchasing (or not purchasing) apparel products online. The following scale:development activities have been completed: 1. Pretest scale (measure and item analysis to test reliability) and modify based on pretest Results. 2. Undergo expert review to assess content validity; revise as necessary Test scale with a large sample of consumers to further assess reliability and to test criterion validity We are currently in the process of testing the scale with a second sample of Internet users to cross validate measure. Initial findings show the revised has good reliability and construct validity and demonstrate the models effectiveness in explaining and predicting information search and purchase behavior in online environments. These findings provide a good deal of insight about the role of perceived risk and benefits in consumers use of the Internet for search and purchase activities.

Scope:1- Convenience includes the overall ease of finding a product, time spent on shopping, minimization of overall shoppoing effort. 2- Online shopping allows consumers to shop at the convenience of their own home, and to save traveling time to retail stores and spend their time on other important tasks and hobbies. Researchers idenfity convenience as a 'fundamental objective' related to online shopping . 3- This is relevant to 72% of online shoppers' claim that they would rather surf online than go to retail store to attain information about a product . According to a study, 72% of online shoppers chose convenience over privacy . 4- In addition to ease of finding products online and shopping time reduction, consumers can shop without time limitation with 24-hr access at their convenience because the World Wide Web never closees. Lokken mentions 24-hr access as a beneficial characteristic of online shopping . 5- Also, consumers can exchange information online through chatting and discussion forums to help them make wise consumer decisions. 6- No need for vendors and no pressure to buy Online shopping benefits both the society as a whole and individuals. 7- The society can save human resources when consumers help themselves by browsing freely online instead of asking for assistance from vendors. 8- In addition, consumers are freed from the pressure to buy from the vendors and can spend more time to make wise purchase decisions. 9- But it is imorpant that Web sites have good product descriptions because it is one of the significant condition that satisfy consumers . 10- "Infinite shelf space" availableConsumers desire a variety of products because they look for the right product that will fully satisfy them. There is infinite variety of products available online because online shopping allows consumers to browse through products that are made all around the world without geographical boundaries.

7 Scope of the study:At any given time there are millions of people online and each of them is a potentialcustomer for a company providing online sales. Due to the rapid development of thetechnologies surrounding the Internet, a company that is interested in selling productsfrom its web site will constantly has to search for an edge in the fierce competition. Sincethere are so many potential consumers, it is of the out most importance to be able tounderstand what the consumer wants and needs. The importance of analyzing andidentifying factors that influence the consumer when he or she decides to purchase on theInternet is vital. Since the Internet is a new medium for there have been new demands setby the consumer. That is why it is crucial for the online retailers to know what influences.

Introduction:Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved into a global phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. Companies also use the Internet to convey communicates and disseminate information, to sell the product, to take feedback and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities the will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business. In addition to the tremendous potential of the E-commerce market, the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumer commerce should not lose confidence .It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. Along with the development of E-retailing, researchers continue to explain Econsumers, behavior from different perspectives. Many of their studies have posited new emergent factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context.

Background:The invention of the Internet has created a paradigm shift of the traditional way people shop. A consumer is no longer bound to opening times or specific locations; he can become active at virtually any time and place and purchase products or services. The Internet is a relatively new medium for communication and information exchange that has become present in our everyday life. The number of Internet users is constantly increasing which also signifies that online purchasing is increasing (Joines, Scherer & Scheufele, 2003). The rapid increase is explained by the growth in the use of broadband technology combined with a change in consumer behaviour (Oppenheim & Ward, 2006). The Internet is considered a mass medium that provides the consumer with purchase characteristics as no other medium. Certain characteristics are making it more convenient for the consumer, compared to the traditional way of shopping, such as the ability to at any time view and purchase products, visualise their needs with products, and discuss products with other consumers (Joines et al. 2003). Oppenheim and Ward (2006) explain that the current primary reason people shop over the Internet is the convenience. They also recognize that the previous primary reason for shopping online was price, which has now changed to convenience. Online shopping is the process consumers go through when they decide to shop on the Internet. The Internet has developed into a new distribution channel (Hollensen,2004) and the evolution of this channel, e-commerce, has been identified by Smith and Rupp (2003) to be the most significant contribution of the information revolution. Using the Internet to shop online has become one of the primary reasons to use the Internet, combined with searching for products and finding information about them (Joines et al., 2003). Smith and Rupp (2003) also state that the consumers have never had access to so many suppliers and product/service opinions. Therefore, the Internet has developed to a highly competitive market, where the competition over the consumer is fierce. In order to have an impact on and retain consumers, in a competitive market, Constantinides (2004) stated that the first step is to identify certain influencing aspects when purchasing online, these can be regarded as factors.

Theoretical Foundation:The Internet has developed an into a new distribution channel and online transaction are rapidly increasing. This has created a need to under how the consumers perceive online purchasing. Price, Trust and Convenience were identified as important factors. Price was considered as to be a most important factor for a majority of the students. The internet has created a paradigm shift of the traditional way people shop. A consumer is no longer bound to opening a times or specific location. So he can become active at virtually any time anyplace and purchase the products or services. The internet is relatively a new medium for communication and the information exchange that has present in everyday life. The number of internet user is constantly increasing which is also signifies that online purchasing is increasing. The rapid increasing is explained by the consumer behavior. The internet is considered a mass medium that provides the consumers with purchase characteristics as no other medium. Certain characteristics are making it more convenient for the consumer compared to the traditional way of shopping, such as the ability to any time view and purchase products visualize the needs with products and discuss products with other consumers. Online shopping is the process of consumer go through the when they decide the shop on the internet. The internet has developed into a new distribution channel and the evaluation of this channel. E-commerce has now identified. Using the internet to shop online has become one of the primary reasons to use the internet combined with searching for products and finding the information about them. Therefore internet develop the h Companies al souse the Internet to convey, communicate and disseminate information, to sell the product, to take feedback and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities they will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business. Due to the rapid development of the technologies surrounding the Internet, a company that is interested in selling products from its web site will constantly has to search for an edge in the fierce competition. Since there are so many potential consumers, it is of the out most importance to be able to understand what the consumer wants and needs

Online Shopping In India:It is a fact that a great online shopping revolution is expected in India in the coming years. There is a huge purchasing power of a youth population aged 18-40 in the urban area. Rising Connectivity:If we observe the growth of Internet Subscribers from the above graph, it is getting doubled year by year. The usage of internet in India is only 4% of the total population. This is also getting increased day by day as the costs of computers are decreasing and net penetration is increasing. The cost of internet usage is also getting lower, with good competition among the providers. WiFi & Wimax system has also started in India. This will increase the usage as it goes more on wireless internet. Indians are proving every time that they can beat the world when it comes to figures of online shopping. More and more Indians are going to online shopping and the frequency of Indias online buying is crossing the overall global averages.

Executive summary:The growing use of Internet in India provides a developing prospect for online shopping.If Emarketers know the factors affecting online Indian behavior, and the relationships between these factors and the type of online buyers, then they can further develop their marketing strategies to convert potential customers into active ones, while retaining existing online customers. This project is a part of study, and focuses on factors which online Indian buyers keep in mind while shopping online. This research found that information, perceived useful ness , ease of use; perceived enjoyment and security/privacy are the five dominant factors which influence consumer perceptions of Online purchasing. Consumer behavior is said to be an applied discipline as some decisions are significantly affected by their behavior or expected actions. The two perspectives that seek application of its knowledge are micro and societal perspectives. The online purchasing behavior of online shoppers and factor influencing online shopping behavior and its future perspective. Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved into a global phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets.

Companies also use the Internet to convey, communicate and disseminate information, to sell the product, to take feedback and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities they will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business. In addition to the tremendous potential of the E-commerce market, the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumer commerce should not lose confidence. It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyber space. Along with the development of E-retailing, researchers continue to explain Econsumers behavior from different perspectives. Many of their studies have factors or

assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context

A:- Company profile:Venus Technology is a highly reputed organization engaged in designing, developing and manufacturing an advanced range of Industrial Fixtures and Dies. Developed through highly sophisticated machinery, our products are appreciated for various features including precise design, accurate dimensions, corrosion resistance, and durability. Due to these attributes, our fixtures, dies, tools and stamps are used by our clients in engineering and automobile industries. We also provide Trainings on CAD/CAM/CAE/Tool Design, for both corporate and educational purposes. We have been successful in creating a mark in the industry, owing to our ability to customize our product line as per the requirements of the clients and industry norms. Our ability to meet the demands of major automotive OEMs from all parts of the country. Our prestigious clients include TATA Motors Ltd., Atlas Copco (I) Ltd., and Warade Tools Pvt. Ltd. Our in-house inspection, assembly and quality testing facilities allow us to deliver flawless range to our clients. We are engaged in designing, developing & manufacturing of industrial fixtures & dies like BIW fixtures, inspection fixtures, checking fixtures, press tool dies, sheet metal dies, plastic moulding dies, casting dies.

We have gained an elite reputation and immense faith of our clients due to our streamlined business operations and unmatched product quality. All this has been possible due to the dynamic mentorship of Mr. Prashant Jadhav. His business sense and leadership skills have taken us ahead of our competitors.

Product Portfolio:We are a reputed organization engaged in designing, developing and manufacturing of a wide range of Industrial Fixtures and Dies. Made as per the industry standards, our comprehensive product line comprises Inspection Fixture, Checking Fixture, BIW Fixtures, Casting Dies, Plastic Moulding Dies, Sheet Metal Dies, and Press Tool Dies. With the help of highly innovative techniques, we develop our range using quality raw material like stainless steel, carbon steel, duplex steel and high grade plastic. Our range exhibits various features due to which, it is used in various applications in automobile and engineering industries. Salient features of our range include: Precise design Accurate dimensions Rust proof High efficiency Longer service life Corrosion resistance Our Services:Apart from being engaged in manufacturing Industrial Fixtures and Dies, we also provide Corporate as well as Educational Trainings on CAD/CAM/CAE/Tool design. Our courses are highly professional and are aptly scheduled to provide efficient training and practical knowledge to the candidates. Long term support is provided to the candidates after the completion of the course, which benefits in terms of knowledge up-gradation, career opportunities and brand goodwill. A:-Our design software on which we design our products and provide training to the candidates, include:-: CATIA VS Uni Graphics Pro Engineer Ideas Inventor AutoCAD

B:-Further, we offer the following services to our clients: CAD/CAM/CAE Services: Modeling and drafting. Analysis and simulation. Legacy conversion. C:-Plotting and Printing: A0 max inkjet color plottor (Hp Designjet 500). Ammonia printing machine

Customization:Our sound manufacturing facilities allow us to design and develop a broad range of fixtures and dies, in accordance with the industry standards and clients' specifications. Understanding the clients' needs and applications, our expert team provides most prolific and economic solutions. We offer customization on all our products, on the basis of the following parameters:Capacity Table size Dimensions Length Shape

Our Team:Our organization is functioning with the help of a highly qualified team, due to the tireless efforts of which, we have been able to achieve immense success. Working in close coordination, our employees make sure that all the industry standards are implemented in the production process which ensures superior quality products. Our team comprises the following: Managers Supervisors Designers Engineers Workers Quality analysts Marketing professionals. All the members working in our team are highly experienced and hold expertise in their respective domains. These professionals are abreast of the industry trends and requirements. Quality Assurance:We are an ISO 9001:2000 certified company, and thus, quality is always prioritized in our organization. For this, we have deputed highly experienced quality controllers, who make sure that consistency is maintained in our product quality. The entire production process is executed under their supervision, who ensure the following: Quality of the raw material Rigorous inspection of the products throughout the production process Checking of the final product output Our quality controllers conduct stringent tests and examination on our product line before allowing the ready products to move out of the production unit. Our range is strictly checked on the following quality parameters: Strength Durability Efficiency Functionalit

Our Clientele:Being a client oriented organization, we make sure that all our efforts and endeavors bring maximum profits to our valued clients. With the help of our highly skilled workforce and innovative technology, we develop a product line that caters to the diverse needs of our clients in engineering and automobile industries. Apart from this, we specifically customize our product line on the basis of size, shape and other dimensions, as per the specifications detailed by our clients. Some of the biggest names in the industry are associated with us, which include: TATA Motors Ltd. TAL Manufacturing Solutions Precision Automation and Robotics India Ltd. Ganage Pressing Pvt. Ltd. Warade Tools Pvt. Ltd. Comau India Pvt. Ltd. Atlas Copco (I) Ltd. Onkar Dies Pvt. Ltd Why Us?:We are a highly reputed organization, which has grown from a small enterprise to a national level organization due to the unified efforts of our team and management. Satisfying the clients with the quality of our products and services is the sole aim of our organization. In addition to our sound manufacturing facilities and an empowered workforce, the following attributes help us in getting an edge over our competitors: Customer-centric approach Wide distribution network Quality assured products Ethical business policy Excellent workforce. Venus Technology An ISO 9001-2008 certified organization, we are engaged in designing, developing & manufacturing of Industrial Fixtures & Dies. Our products are appreciated for various features including precise design & accurate dimensions.

B:- Basic introduction of the project:The Internet is revolutionizing the way consumers learn about, evaluate and purchase products as e-commerce technologies provide a new platform for communication of product and brand information. However, the US apparel industry has failed to take full advantage of the unique capabilities of the . Internet to effectively market their products, largely because not enough is known about consumer adoption of online search and purchase behaviors. Fundamental research is necessary to fully realize the potential of the Internet in enhancing product/brand awareness, evaluations and purchase intentions among consumers worldwide. But little fundamental research evaluating the potential benefits that motivate online search and purchase behaviors (or costs that may inhibit such behaviors in the virtual environment) from a scientific theoretical perspective is currently available. To effectively impact product/brand evaluations and purchase intentions, it is essential to understand consumers motivation to search for product information and/or purchase online and the costs that inhibit online search/purchase behavior. Empirical work on shopping in traditional retail environments has shown that "consumers select retail outlets that meet their expectations on dominant shopping motives. Consumers shopping motives may similarly impact shopping behaviors in the virtual environment; however, there is no evidence to indicate how perceived costs (or a combination of motives and costs) may impact adoption of the Interned as a medium for product search and purchase. To address these deficiencies, we developed and tested a consumer behavior model that simultaneously examines both motivations and costs associated with online search and purchase behavior.

1- As a commercial medium, the Internet is an efficient distribution channel thought to offer a number of important benefits to both customers and firms (Kline, 1995; Caruso, 1995). Apparel products represent a major product category that holds significant potential for Internet shopping. Online apparel sales reached $ 1.1 billion in 1999 and 2000 online apparel sales doubled 1999 sales marking apparel one of the fastest growing sectors and the most popular product category on the Internet . 2- Apparel was identified as one of the product categories realizing the fastest growth in number of online transactions in 2001. In November 2001, a greater percentage of Internet users bought apparel than books online (Seckler, 2002). Given the potential of the Internet as a marketing medium for apparel products, it is important for the US apparel industry to better understand consumers online apparel purchase behaviors to take advantage of the unique capabilities of the 3- Internet to effectively market their products Internet is the rapidest growing media during the past decade. Especially, online shopping is a rapidly growing e-commerce area. Forrester Research forecasts that online retail trade will be about $217.8 billion by 2007 and account for 8% of total retail. ComScore Networks reported that for the year 2001, domestic online sales totaled more than $53 billion. This figure shows a growth rate of about 20% compared to the year 2000 4- According to Arbitron/Edison Media Research (2002), the number of consumers who purchase online is growing sharply. 40% of all Americans have ever purchased goods or services on the Web. Average amount spent online in last one year was about $658 and 56% of Internet users have made a purchase online. 5- According to annual Internet survey of WHICHonline, 15% of British Internet users visit online shopping sites most frequently and 14% regularly use Internet for online shopping. This survey suggests that book is the most popular item on the Internet and Flights/Holidays is the second popular item.

6- Online shopping basically provides the way consumers go shopping and purchase services and goods with reasonable price on the Internet. For some consumers, shopping and purchasing online have become part of their daily lives, while others may not even care about it. At this point, I wonder what factors influence online purchasing behavior and explain the difference in online buying behavior among Internet users.

C- Stages of Buying Hierarchy of Effects:-

Create awareness.

Create interest.

Develop desire

Create conviction

Induce action (behavior)

Reduce cognitive dissonance (behavior).

Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to meet basic psychological needs of hunger and thirst. When this has been met they then move up to the next stage of the hierarchy, safety needs, where the priority lay with job security and the knowing that an income will be available to them regularly. Social needs come in the next level of the hierarchy, the need to belong or be loved is a natural human desire and people do strive for this belonging. Esteem need is the need for status and recognition within society, status sometimes drives people, the need to have a good job title and be recognised or the need to wear branded clothes as a symbol of status.

Self- actualisation the realisation that an individual has reached their potential in life. The point of self-actualisation is down to the individual, when do you know you have reached your point of self-fulfilment? But how does this concept help an organisation trying to market a product or service? Well as we have established earlier within this website, marketing is about meeting needs and providing benefits, Maslows concept suggests that needs change as we go along our path of striving for self-actualisation. Supermarket firms develop value brands to meet the psychological needs of hunger and thirst. Harrods develops products and services for those who want have met their esteem needs. So Maslows concept is useful for marketers as it can help them understand and develop consumer needs and wants.

D- Department:Human resources Maintenance/operations Financial/accounting Marketing Perhaps product development IT (maybe) Logistics (if shipping/movement of items) Customer service (if needed)/product support Legal (if large corporation..all gov. agencies have a legal dept.) Planning (if product dev) Perhaps a research arm if large and developing products (computers, cars, drugs, etc.) And security. That's a start! (retired IBM corp exec/psychologist) Other Department:1-Multimedia Department:- The Multimedia Department is divided into various technical sections: 2D and 3D multimedia program design, webpage design, and publications. All sections keep up-to-date with new trends developments in design techniques and use the latest technology including: Macromedia Director, Macromedia Authorware, and Macromedia Flash.Programs, websites, and publications are designed using: Adobe Photoshop, Adobe Premiare, Macromedia Flash, 3D Studio MAX, Corel, Draw, and Macromedia FreeHand.

2- Developing Department:- Like These are the prosess of development in IT sector.

3- Internet Department:- Designs portals and websites with content and interfacing for institutions, organizations, and individuals using the latest information technology (IT). The websites are database-driven and built using a logical approach to facilitate browsing, modification, updating, and management. Internet Department always keep up-to-date with the latest internet technologies and project management techniques and the company plans to expand its services in the near future to include Content Management System (CMS) and Learning Management Systems (LMS).

4- Testing Department:The Testing Department is one of the most important departments on which Information Technology relies in order to improve and assure the quality of its software whether produced for the Company itself or for a project. The Company always cares about the development and improvement of the testing team through specialized courses in the fields of testing and providing them with related books and references in order to assure the high quality of the product, and therefore, satisfying the customers, which is the primary aim of the company. 5- Technical Consulting Service:- Our aim is to provide integrated business and IT consulting to organizations, government agencies domestic and regional. We help "Shaping the Corporate. We hope to be the consultancy of choice and viewed by our employees, clients, and investors as a partner in their success

6- Quality Department:To support its strategy of spreading knowledge and culture in different languages to meet the needs of worldwide, Harf has established a quality control system to ensure the highest standards in all its projects and products. The company regularly updates its working environment to achieve the challenging balance between high quality products, customer satisfaction, increases productivity, and accuracy.

Few Factors That Boost Online Shopping in India:Rapid growth of cybercafs across India Access to Information The increase in number of computer users Reach to net services through broadband Middle-class population with spending power is growing. There are about 200 million of

middle-class population good spending powers. These people have very little time to spend for shopping. Many of them have started to depend on internet to satisfy their shopping desires.

Few Facts about Online Shopping:The figures from IAMAI show that the internet users in India will grow to 200millionby 2010. Around 25% of regular shoppers in India are in the 18-25 age groups, and 46%are in the 26-35 year range. Indian online matrimonial sector is worth around $230 million. Worldwide E-commerce is only growing at the rate of 28%, since India being a market, the growth of e-commerce is expected at 51% in the coming years. In line with global trends finally India has also started shopping online these days. As per the study by IAMAI online shopping in India has rose from$11million in 19992000 to $522 million in 2007 and it is expected to rise above$700 million by end March 2010. younger

Changing Attitude towards Online Shopping:Awareness, Future Demand Focus for Emerging Markets & Current Issues Malls springing up everywhere and yet people are E-shopping! And not in small numbers either. Consumers are more rational nowadays and have ability to get the choices from the market. Awareness among the consumers is spread through internet.

The number of internet users is increasing day by day which attracts people who have an option to buy online. It was never thought that Indians would go in for e-shopping in such a big way. Ticketing, travel bookings and even books and movies seem fine to buy online.

Knowing that in India sizes vary from brand to brand and quality is inconsistent, even of some electronic items, how is it that there are people buying these items online? In India there are some segments of people who have not yet tried purchasing over internet. Sample Design:The factors t hat we int ended to examine can be applied to and invest igat ed at any po pulat io n t hat uses t he Int ernet and buys online product s Online. Since t here are t ime and resource restraint s, a specific Populat ion had to be ident ified in order to generalize and creat e relevant segment s. We decided t hat t he sample size sho uld co nt ain o ver 100 respondent s and we collect ed answers from100 respondent s. The po pulat io ns for t his research are Inst itut e students at t he Pune Inst it ute o f Business Management t he Inst itute was chosen on a convenience basis.

Co nvenience sampling involves using samples t hat are t he easiest to Obtain and is co nt inued unt il t he sampling size t hat is need is reached.

We will attempt to collect as many respondents as possible but since we will be studying students we assume that there will be little variation in the population making it more approved to generalize the response rates. The sampling method for students took also place on a Convenience basis since the students that agree to answer the questionnaire are those that were chosen Type of Research: Descriptive Research.

Research Methodology:Data for this study was collected by means of a Survey conducted in Pune Institute of Business Management. The sample size was 100. .The Questionnaire (shown in Annexure) was used Mainly to test the model proposed for Attitude towards online shopping. The type of research was both exploratory as well as Descriptive. Likert five point scales ranging from Strongly Agree to strongly disagree was used as a basis of Questions. We took around eleven different factors by studying the existing models of consumer attitudes that play an important role in online purchase, and then proposed a model leading to online. shopping. This model was then tested in our research by the mode of factor analysis in SPSS. Research Strategy:When collecting data to approach the purpose of a research there are two ways in which the data can be collected. In order to acquire a General knowledge about the topic, secondary data is primarily used and is one of the ways by which data can be collected. The second way to collect data is the primary data collection. Usually when a study is Conducted, secondary dat a is not sufficient enough and needs to be complet ed with primar y dat a which is co llect ed by t he research. Descriptive Research Method:We will conduct our research in order to collect primar y data and reach t he o bject ive of t he Dissert at ion. We will also be discussing which different t ypes o f Met ho do logies t hat were used. Since our research is of descript ive character our primary int ent ion was to collect secondary data and analyze it .By doing so we fo und t he factors Price, Trust and Convenience. We t hen collected primar y data t hrough a survey. The main purpose of t he survey was to collect data about Online Co nsumer Behavior and t he significance of t he established factors, Price, Trust, and Co nvenience In order to be able to find and establish Online Consumer Segment s, Consumer Trait s and Online Behavior had to be ident ified.

Research purpose:The purpose of t his research is primarily to ident ify and get insight into what main factors t he online consumer takes into consideration when purchasing books o nline, as books are t he most commonly bought product on t he Int ernet. Furt her, we will invest igat e if any segment s can be established by ident ifying t he co nsumers and how t hese segment s relate to t he ident ified factors. The findings o f t his research will be out lined as implicat ions for online book retailers in order to enhance t heir consumer knowledge and increase t heir online market ing strategy effect iveness. a-Method:- This chapter will illust rat e t he way t he research has been conducted by present ing t he met hodologies and t heories used. Choice of methodology:We will attempt to find t he main factors t hat influence t he online co nsumer when making an online purchase. In order to broaden our own understanding of t he subject we conducted our init ial research in lit erature o n co nsumer behaviour and e-commerce. We reviewed studies t hat had similar aims and paid part icular attent ion to t heir results For our own research we decided that the most appropriate approach would be a questionnaire that would be filled out by students at Pune Institute of Business Management. To encourage the students not to reject the questionnaire outright, and to increase the response rate, the questionnaire should be limited to maximum of one sheet of A4 paper. This study started out as an exploratory study but developed into an explanatory st udy since we start out wit h first gaining knowledge about consumer behavio ur to furt her being able to gain knowledge about online consumer behavio ur. Having t his knowledge we cont inue t o ident ify specific factors t hat are o f impo rtance when t he online consumer is making online purchases. This info rmat ion is t hen used in order to find relat ionships and correlat ions between t hese variables.

Research Approach:There are two most commonly used research approaches, t he induct ive and t he deduct ive met hod. The induct ive research met hod attempt s to set up a t heory by using co llect ed data, while t he deduct ive research approach attempt s to find t he t heory first and t hen t est it to t he observed data. We chose a approach for our study as deduct ive research

we would move from t he more general to the

specific. We will present the t heoret ical findings on consumer behaviour in t he next chapter, after which we will present our quest ionnaire in chapter fo ur where we present our collect ed primary dat a.

Research Philosophy:When st art ing a study t here must be an underst anding of in which way t he will be approached. The established research study

philosophy explains t his

approach when collect ing and analyzing data. The research process has t hree main fo cuses: posit ivism, realism, and int erpret ivism.

Po sit ivism is t he approach where t he researcher does not want to be affect ed nor affect the subject of t he research. The

by

researcher believes t hat t he

co llect ed and analyzed dat a can be simplified to a law-like generalizat ion using exist ing t heories to develop hypot heses from t hese. In t he realist ic approach, t here is a realit y exist ing independent of the mind. Like t he posit ivist ic approach it assumes a scient ific approach to the development of knowledge. The int erpret ive way o f approaching t he subject of t he research does not agree wit h t he fact t hat law-like generalizat ions can be made. Inst ead it stress t hat t he human mind and t he social world are too complex in order to be generalized.

Research Strategy:When co llect ing dat a to approach t he purpose of a research t here are two ways in which t he data can be collected. In order to acquire a general knowledge

about t he topic, secondary data is primar ily used and is one of t he ways by which data can be collect ed. The second way to collect data is t he primary dat a

co llect io n. Usually when a study is conducted, secondary data is not sufficient enough and needs to be completed co llect ed by t he researcher. with primar y data which is

Primary data:Primary data for our research was collected through questionnaires. When collecting primary data one can choose to do interviews, observations, experiments, and questionnaires. Due to the purpose of our research, only the questionnaire method would be able to approach the topic and be able to collect the answers in a satisfactory manner. In our research the primary data is mainly concerned with analyzing the respondent in order to later on classify the respondent. Further on, the primary data will be used to analyze the factors and how these are related to the respondent. The primary data is conducted in a manner to be able to approach our research and solve our research questions. Secondary Data:- Secondary data can be classified into three different subgroups: documentary, multiple source, and survey. Documentary second hand data comes in both written and non written form. It is the data that can be collected from sources such as journals, databases, transcripts etc. This form of data is dependent on the access the researcher has to it. Survey based secondary data is the data that is collected through the survey and is available as data table forms. Multiple source secondary data is data that has been compiled into documentary or survey form; the main characteristics of this type of data is that it has been changed into a different form before the researcher is assessing the data.

We have mainly used documentary secondary data combined

with multiple source

data. Documentary secondary data has been the data collected through different types of research conducted within the topic, articles, and books that are written on consumer behavior and ecommerce. This type of data has been the fundamental source for gaining knowledge within the topic in order for us to be able approach the research problem. The secondary data that we used for our research is data that has also lead to the conclusion of which factors that will be examined. The multiple source data that we have used has been in order to choose which product we would use for our research in order to be able to find the product that is most widely bought over the Internet.

Summary:- In order to find the factors that influence the online consumer, as we have set out to do, this study will go from an exploratory to explanatory study. This also explains the deductive approach that we chose, as we first turn to the literature in order to gain knowledge. We do not want to affect the respondents answers and we, therefore, perform a positivistic approach to the study. By using secondary data we attempt to find the influencing consumer factors and then continue with primary data in order investigate the influence of the factors.

Theory:This chapter presents the theories behind consumer behavior. It will also discuss online consumer behavior in order to continue with the identification of the influencing factors. The theories of consumer behavior will be used in order to be able to find consumer segments that will show whom the identified factors affect. Introduction:- This dissertation aims at finding factors that affect the online consumer s buying behavior. By reading literature concerning consumer characteristics and online

consumer characteristics we believe to find implications for certain factors that are of importance for the online consumer.

The Internet is a worldwide accessible series of computer networks that transmit data by packet switching using the standard Internet Protocol. It is a "network of networks" that consists of millions of smaller domestic, academic, business, and government networks, which together carry various information and services, such as electronic mail, file interlinked Web pages and other documents of the World transfer, the the

Wide Web. Originally

Internet was mainly used by academics, research scientists and students; however that scenario has changed as commercial organizations have moved to incorporate the World Wide Web into their promotional campaigns, and by offering the facility of online purchasing. The Internet has evolved into a worldwide accessible marketplace for information exchange and e-

commerce. The strategic importance to be available for consumers on the World Wide Web, with information and services has become particularly relevant to firms. The Internet can make it easier for companies to have information about their products or services available to their customers or potential customers. A company can satisfy the consumers individual need of information at a low cost in comparison to sending out product brochures for example. As the user information provider can choose information from can achieve better websites, which implies that the

understanding of the user s needs and wants by

collecting data. On the other hand, the Internet is a place with hardly any structure or rules: therefore, large efforts are needed in order to show the consumer where a specific site is located, And what services are available on that site. Whether it is the traditional market or the online market, the marketer must understand the consumer and how he makes his decisions and flow of stimuli from the

purchasing choices because the consumer is under a constant

marketers advertisements. The marketer has the possibility to decide and to control the output that will be forwarded to the consumers, but when the advertisement reaches the consumer that

control ends. The consumer then interprets the information that has been sent out in his own way based on specific factors for every consumer. Therefore marketers have developed different theories that can explain why consumers interpret information in a certain way, and thereby understand certain behaviors. Several characteristics of the online consumer. articles have set out to identify the

Consumer behavior:Buyers characteristics are important theories from Kotler and Armstrong (2007) and it

explains the way that the consumer interprets and receives stimuli from advertisements. The decisions of consumers are influenced by a number of individual characteristics that are linked to the consumer s specific needs (Kotler & Armstrong, 2007).

Consumer characteristics:- Consumer characteristics are explained by: Cultural characteristics, Social characteristics, Personal characteristics, and Psychological Characteristics. These characteristics are identified, by the marketer, in order to identify the consumer and to be able to decide on the strategy to what kind of consumer to target. Hence, these characteristics are used in order to segment the market and target specific consumer groups. Cultural Characteristics:- The Cultural Characteristics are recognized as the main influencer of consumer behavior. These characteristics are developed by three features underpinning consumer behavior: Culture, Subculture, and Social Class. Culture is mentioned as the most basic cause of a persons wants and needs. Kotler and Armstrong (2007) argues that human behaviour is mostly learned and that we are exposed to different sets of values and beliefs from a young age, and that these values influence our behaviour and decision making. Hence, these characteristics are interesting for marketers and important indicators of certain consumer behaviour and taste. Subcultures are small group formations with a certain number of people that share

values and beliefs such as nationalities, religions or geographic regions. An identified subculture can serve as an important and effective market segment which can be targeted. Social class is recognized by Kotler and Armstrong (2007) as a class structure, consisting of a combination of factors which gather different types of members. Some identified factors are income, age, education, and wealth.

Social characteristics:The Social Characteristics are divided into three different categories, namely Reference Groups, Family and Social Role and Status. Reference Groups:- According to Kotler and Armstrong (2007) the effects of the Reference Groups is mainly based on the belief that a persons behaviour is influenced by many small groups. When a group has a direct influence it is called a Membership Group, for example: family, neighbors and co-workers. Reference Groups are the groups to which the person often wants to belong to and to be a part of but is not. These groups indirectly and directly form a persons behaviour and attitudes. There are three different ways by which these groups influence a persons behaviour; they may expose a person to new behaviors and lifestyles, influence a persons attitudes and self-concepts and also create a pressure of confirmation by Reference Groups. Another influence of importance is the opinion leader. An opinion leader is a person that influences others to follow his believes and attitudes towards certain issues, products or areas (Kotler & Armstrong, 2007).

Family: - Family members have a great influence on the buying behaviour. The involvement and influence by different family members. Varies, both to which degree but also in what way. Therefore, it is important for marketers to understand which role is played by whom in the family and direct the advertisement towards the main influencing part of the family.

Roles and Status:- Each person belongs to different types of groups and also plays different roles whilst having different positions in the various groups. Roles are identified by Kotler and Armstrong (2007) as what activities people are expected to perform from other members of the group. Personal characteristics:- These personal characteristics are categorized into: Age and Life Cycle Stage, Occupation, Economic Situation, Lifestyle, Personality and Self-Concept. The Age and Life-Cycle Stage:- These stages explain different periods in life that the consumer experiences as he goes through life. These different stages also represent different changes that the consumer may experience when reaching a new stage. According to Kotler and Armstrong (2007) marketers, therefore, define their target markets in terms of the differ ent stages in order to develop appropriate marketing plans. Occupation The occupation tends to have an effect on the products and services bought by the consumers. This leads to the possibility of developing different types of products or services that suits interests identified to be above average within an occupation.

The Economic Situation Wealth will affect a consumers product choice. A consumer may be price-sensitive or not depending on the level of income, level of savings, level of interest rates, and also the product or service itself. Lifestyle This is identified to be a persons way of living which is recognized by the activities, interest, or opinions he or she has and it also explains the way a consumer interacts in the world.

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